Adding Reportable Fringe Benefit

Lambert Kitchens

Can someone please tell me where to add an RFB (grossed up) in a terminated employee's details so that the benefit to that employee (which, for our employees is a benefit paid for by the company) appears on the STP? I am assuming that this item will not affect the employee's gross or tax.

Your previous answers do not outline in detail where to create the item.

Thank you

Acctd4

Hi There

Do you have the grossed-up amount from your tax agent ?

Lambert Kitchens

Yes I have grossed up amounts to add

Lambert Kitchens

I am using Reckon Payroll - after migrating from Payroll Premier. I thought it was going to be a similar process to Payroll Premier but alas!

Lambert Kitchens

After consulting with Reckon and giving them access to our book, an FBT amount was added to the YTD figures of the employee with the category T. When they resubmitted the STP before the termination pay again, the employee's tax has increased. Reckon is trying to tell me that the FBT was added in the correct place but instinctively, I feel it is not correct. If this information is downloaded into the employee's pay details when he submits his tax return, then the ATO will think that he has paid more tax than he actually has. Am I wrong? Please help as I have been on this for days

Lambert Kitchens

I have been running Payroll Premier since the migration to make sure that everything reconciles. When I added the FBT in payroll premier, it did not increase the PAYG for the employee. Something is wrong

Acctd4

It’s normally added into the last Paycheque pre-31 Mar - rather than via YTD adjustment - but that shouldn’t matter.

It sounds like the Payroll Item has been incorrectly set to increase PAYG. Double-click on the Payroll Item (from your Payroll Item list) & click Next until you get to the Taxes window. On that one, make sure PAYG Tax is UNTICKED. Click Next through til the end, then Finish

Robyn Kelly (Partner)

If you do a Payroll Detail report for that employee you should be able to see the individual transactions to pinpoint what has happened

Lambert Kitchens

Thank you Shaz and Kelly

Quite frankly I am not prepared to do anything. If the representatives from the Help Desk cannot get it right, (they made changes in my book as I was watching) then I will not be able to, as I am unfamiliar with the program. When I get comments from them, like "I'll try this .....", it does not give me much confidence in anyone.

As the company has been sold and is in the process of being wound up, I need to get this sorted as soon as possible.

I will have a look at the Payroll Detail report and see what that discloses.

Isn't this something that I would expect the help desk to check if it were an option?

Roz

Acctd4

Hi Roz

The Payroll Detail report will show the transactions but we already know it’s likely due to the configuration of the RFB Payroll Item.

If you'd like me to take a look & correct it for you, you're welcome to email me direct (I'm on site with a client all day today but can assist remotely tomorrow morning) 😊

Lambert Kitchens

Thank you Shaz, that would be very much appreciated.

I will send you an email today with details of the 3 employees gross and tax (to 31 January 2024 - final pay) and grossed-up fringe benefit.

Talk tomorrow then.

Kind regards

Roz

Acctd4

Apologies Roz!

I've just realised this is posted under the Reckon Payroll category - Are you using the Payroll App or Reckon Accounts/Hosted program ? I was assuming it was the RA/RAH program so my previous advice relates to that. Unfortunately, I'm not sure how this works in the App as it's very different 😬

@Rav Can you assist Roz with this ?

Lambert Kitchens

Reckon Payroll app. We migrated over from Payroll Premier to this ''exciting new product"

Lambert Kitchens

Thanks anyway Shaz for offering your help

Acctd4

Apologies again ... @Rav should be able to assist with this one Roz 😊

Lambert Kitchens

Hi Shaz

How do I get in touch with Rav?

Acctd4

Rav is the Reckon Community Forum manager & is also across the various Reckon products, including the Reckon App.

If you click on @Rav's name link, you can go to his profile which has an option to send him a message direct 😊

Tanvi_kataria

Morning @Lambert Kitchens

To add RFB amount for a terminated employee, you can add that in the Employee Details under Initial YTDs. This you can do, when you edit employee details followed by Initial YTDs, there is an option for you to add Fringe Benefits.

Follow the steps as in the screenshots provided below -

• Go to Employees and Edit Details

• Click on Initial YTDs and select Fringe Benefits

I hope this helps you with your query, please let us know if you have any concerns/issues. Thank you!

Regards

Tanvi

Lambert Kitchens

Tanvi

Thank you for your comments. This has been tried and yes it does add the fringe benefit but it also changes the tax on the employees' details. There is no option in the YTD to exclude the tax that I know of.

This fringe benefit is not taxable in the hands of the employee. It should merely be a notation on their record and should be tax negative.

There must be another way. The Reckon help desk has tried this.

Roz